Japanese Market Retreats After Positive Start

5/1/2012 10:10 PM ET

The Japanese stock market edged higher on Wednesday with the overnight positive close on Wall Street and the yen's weakness against the U.S. dollar triggering some buying in front line stocks. However, the market has pared some of its gains and is currently trading flat.

Insurance, mining, automobile, steel and non-ferrous metals stocks opened on a firm note, but subsequently gave up some gains. Electric power, railway and chemicals stocks are trading mixed.

The benchmark Nikkei 225 index, which edged past 9,400 in early trades, is currently trading at 9,360, up 9.1 points or 0.1 percent from its previous close.

Sharp Corp, Casio Computer, Nippon Electric Glass, Chubu Electric Power and Tokyo Electric Power are down 2 to 3.5 percent.

In the currency market, the U.S. dollar traded in the lower 80 yen range in early deals in Tokyo. The yen is currently trading at 80.18 to the dollar.

On Wall Street, stocks ended with solid gains on Tuesday with traders reacting positively to an upbeat report on U.S. manufacturing activity.

The Dow rose 65.7 points or 0.5 percent to 13,279.3, the Nasdaq edged up 4.1 points or 0.1 percent to 3,050.4 and the S&P 500 climbed up 7.9 points or 0.6 percent to 4,405.8.

Major European markets were closed on Tuesday. The U.K. market ended on a strong note, with its benchmark FTSE 100 index gaining about 1.3 percent.

U.S. crude oil futures rallied to settle at a five-week high on Tuesday, on some encouraging manufacturing data from the U.S. Crude for June delivery gained $1.29 or 1.2 percent to close at $106.16 a barrel on the New York Mercantile Exchange.